Transat A.T. (TSE:TRZ) Stock Crosses Below 50-Day Moving Average - Should You Sell?

Key Points

• Transat A.T. shares fell below their 50-day moving average, trading as low as C$1.92 and last changing hands at C$1.94, below the C$2.14 50-day and C$2.38 200-day averages.
• Analyst sentiment is cautious: three analysts rate the stock “Hold” and two rate it “Sell,” resulting in a consensus “Reduce” rating and a C$2.28 target price. Recent price targets were lowered by TD, Desjardins, and Scotia.
• The company reported a quarterly loss of C$2.18 per share on C$792.72 million in revenue, while analysts expect a full-year loss of C$4.34 per share. Its liquidity metrics remain weak, including a current ratio of 0.58 and quick ratio of 0.76.

Shares of Transat A.T. Inc. (TSE:TRZ - Get Free Report) crossed below its 50-day moving average during trading on Tuesday. The stock has a 50-day moving average of C$2.14 and traded as low as C$1.92. Transat A.T. shares last traded at C$1.94, with a volume of 20,376 shares changing hands.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on TRZ shares. TD cut their price objective on Transat A.T. from C$2.25 to C$2.00 and set a "hold" rating on the stock in a research report on Friday, September 11th. Desjardins reduced their price objective on Transat A.T. from C$2.80 to C$2.50 and set a "hold" rating on the stock in a research note on Friday, September 11th. Finally, Scotia decreased their target price on Transat A.T. from C$2.00 to C$1.65 and set a "sector underperform" rating for the company in a report on Friday, September 11th. Three equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus target price of C$2.28.

Transat A.T. Stock Down 2.0%

The business's 50 day moving average is C$2.14 and its 200-day moving average is C$2.38. The company has a debt-to-equity ratio of -180.72, a current ratio of 0.58 and a quick ratio of 0.76. The company has a market cap of C$79.93 million, a PE ratio of -0.34, a P/E/G ratio of -0.04 and a beta of 1.47.

Transat A.T. (TSE:TRZ - Get Free Report) last posted its quarterly earnings results on Thursday, September 10th. The company reported C($2.18) EPS for the quarter. Transat A.T. had a positive return on equity of 31.06% and a negative net margin of 6.57%. The firm had revenue of C$792.72 million for the quarter. As a group, analysts predict that Transat A.T. Inc. will post -4.34 EPS for the current year.

About Transat A.T.

Air Transat is a leading travel brand voted 2025 World's Best Leisure Airline by passengers at the Skytrax World Airline Awards. Its program offers access to international destinations, mainly in Europe, the Caribbean, the east coast of the United States, South America and North Africa. Air Transat is recognized for its excellent customer service. Its fleet includes some of the most energy-efficient aircraft in their category. Based in Montreal with major hubs in YUL Montréal-Trudeau International Airport and Toronto Pearson Airport (YYZ), it has 5,000 employees with a common purpose to bring people closer together.

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